Trump petitioning the Supreme Court for an immediate order to dismiss Lisa Cook from the Federal Reserve board.
In a significant turn of events, a federal judge has ruled that President Donald Trump's attempt to remove economist Lisa Cook from the Federal Reserve Board of Governors was likely illegal. This decision, made last week, came after Trump tried to fire Cook on August 25.
The judge, whose name remains undisclosed, found that the administration had not met the legal requirement for firing Fed governors, which is limited to misconduct while in office. Cook, who was appointed to the board by President Joe Biden, has denied any irregularities and has not been charged with a crime.
The Trump administration's effort to reshape the seven-member board of the Fed is not new. Cook's removal is just one part of this attempt, which also includes the confirmation of Stephen Miran, Trump's nominee for a vacant seat on the Fed's board, by Republican senators on Monday.
Trump's lawyers have argued that Cook's alleged actions, even if they occurred before her time as governor, call into question her reliability and ability to be a responsible steward of interest rates and the economy. However, the specific details of these actions have not been publicly disclosed.
The White House's campaign to remove Cook marks an unprecedented attempt to reshape the board of the U.S. central bank. No president has ever fired an active governor of the Fed in the 112-year history of the agency.
Cook has sued Trump for trying to fire her, claiming it as an illegal attempt. The Supreme Court has not yet ruled on the legality of Trump's attempt to fire Cook from the Fed's board. By a 2-1 vote, a panel of the federal appeals court in Washington rejected the administration's request to allow Cook's firing to proceed.
The Federal Reserve, currently facing a dilemma between managing inflation and promoting economic growth, is at the heart of the U.S. economy. Its board of governors is responsible for setting interest rates and overseeing the overall direction of the economy.
The future of Cook's tenure on the board remains uncertain, with the Supreme Court yet to make a final decision. The case is a significant test of the independence of the Fed and the limits of presidential power in shaping the U.S. central bank.
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